Big Data Firm Ravenpack Partners With The Fly

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Spanish news sentiment analysis provider RavenPack has partnered with The Fly (formerly named TheFlyOnTheWall) to include the financial news provider’s coverage of analyst ratings, earnings surprises, insider trading and M&A news into its platform.

Ravenpack argues that news from The Fly, which is reportedly taken from real-time sources such as Bloomberg, has a significant impact on short-term price movements.  The Fly was sued by Merrill Lynch, Morgan Stanley and Lehman Brothers in 2007 for infringing on their intellectual content.  In some cases, the Fly was so quick to redistribute downgrades that the brokers’ own sales staff did not have time to notify clients.

RavenPack is a Spanish firm founded in 2003 specializing in creating news sentiment and analytics data sold to financial firms. Ravenpack’s client base includes both retail and institutional clients, consisting of quantitative investment firms, banks and financial technology providers. RavenPack provides sentiment data on over 38,000 listed stocks from the world’s equity markets, over 2,500 financially relevant organizations, 138,000 places, 150 currencies and 80 commodities. Its sources include Dow Jones Newswires, Barron’s, the Wall Street Journal and over 19,000 other traditional and social media sites.

Our Take

For The Fly, which charges individual investors $35 per month for its breaking news, the partnership represents an incremental licensing deal. Since Ravenpack transforms news content into sentiment analysis, media suppliers like The Fly view it as complementary rather than competitive. Also, for The Fly the deal represents diversification into a more institutional client base.  For Ravenpack, the deal may be a cheaper way to get timely access to analyst upgrades and downgrades than negotiating with the individual brokers, or with sources such as Bloomberg.

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About Author

Sandy Bragg is a principal at Integrity Research Associates. He has over thirty years experience as an investment research professional. Prior to joining Integrity in 2006, he was an Executive Managing Director at Standard & Poors, managing S&P’s equity research business and fund information properties. Sandy has an MBA from New York University and BA from Williams College. Email: Sanford.Bragg@integrity-research.com

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